Loyalty Marketing

Loyalty Marketing, Loyalty ConsultancyWe help clients

  • develop loyalty strategies
  • connect loyalty strategies with Customer Experience
  • develop customer engagement strategies
  • improve the effectiveness of any existing loyalty programmes or initiatives
  • exploit new technologies to increase customer engagement including the development of smart phone loyalty apps


What is customer loyalty ?


Definition loy·al  (loi  l)  adj.

1. Steadfast in allegiance to one's homeland, government, or sovereign.

2. Faithful to a person, ideal, custom, cause, or duty.


Customer Loyalty is earned and not bought and Forrester has shown a strong correlation between good customer experience and loyalty


Why is customer loyalty important ?


Companies with higher proportions of loyal customers out perform those with fewer.

  • Acquiring a new customer can cost between 5 and 10 x the cost of keeping an existing customer (McKInsey 2001)
  • The share price of Companies with high customer experience scores outperformed the S&P 500 by more than 3 times over a 6 year period (Forrester 2013)
  • The life time value of Promoters are on average 2.6 times Detractors peaking at 4.6 times in the online retail sector (Bain & Company 2013)
  • Loyalty Leaders grow more than 2x faster and have 15% lower costs compared to Average Companies (Bain & Company)


One of the key outputs of many loyalty programmes is rich customer data. We help clients get the most out of this data and help them connect it to existing data sources and create a 360 degree customer view.


The most successful loyalty programmes have learned how to extract value form this  data , improve the product/service proposition, customer experience and sell more, and more profitably


Measuring and Quantifying the Benefits of Loyal Customers


We help clients measure the profitability and ROI from growing the Loyal Customer base. We help build business cases to support the introduction of loyalty and CX initiatives


Loyal Customer behaviours we can measure


  • Recommend your brand to others (lower customer acquisition costs)
  • Longer tenure (LTV)
  • Purchase more frequently
  • Spend more per purchase (ATV)
  • Cost less to serve
  • Provide feedback /insight to improve the customer experience


Measuring Loyalty Programme Profitability ROI and Economics


We help clients understand the economics and profitability of loyalty programmes helping them improve the design and the ongoing management


Key elements include calculating

  • Fixed costs of programme operation
  • Variable costs associated with rewards and customer engagement
  • Incremental revenues and profit from customer engagement
  • Break even point in terms of active target members


Lasting Customer Engagement


A typical UK consumer will be signed up to a dozen loyalty programmes but will  be actively involved and engaged in just a handful of them.


  • Just 44% of members of loyalty programmes where active in terms of one or more engagements in the last 12 months (Colloquy 2013 Loyalty Census)
  • 53% of members of loyalty programmes stopped participating in at least one programme in the last year and just 7% formally requested to leave the programme  (Maritz Loyalty Report 2013)


Traditional Loyalty Programmes are just one way  to engage with customers and are not always appropriate nor profitable


We help clients develop test programmes , define and measure success criteria , learn more about how to reward and engage with their customers before committing to expensive roll outs.


See our loyalty marketing  blog


For the latest news, tweets and blog posts about loyalty marketing follow us


Loyalty Programmes The Case For PersonalisationLoyalty Programmes Personalisation Relevancy InfogrpahicLoyalty programmes fail when they lack relevancy Many loyalty programmes could significantly improve profitability, satisfaction levels and engagement if personalisation and relevancy were improved We look at the evidence that greater personalisation in loyalty programmes drives performance      Read MoreCustomer Experience Driven Loyalty Programme DesignWhat can we learn about loyalty programme design form Lidl's response to the launch of Morrisons Match & More card ? We explore the importance of customer experience in loyalty programme design , sometimes forgotten when businesses focus inwardly on internal constraints such as technology, resources , margin and operations...  Read MoreHow Trust influences Churn and Customer Loyalty What can the Energy market tell us about Customer Loyalty?Despite high media coverage few have ever switched supplier and fewer still are planing to in the next 12 months New entrants have significantly better customer satisfaction scores according to Which though still low market sharesThe findings illustrate some  key themes in loyalty marketing applicable to all sectors, including more competitive sectors. Some businesses don't realise they have a  "loyalty problem"See our infographicRead MoreGamification , Behaviour Management andCustomer Engagement OptimisationPosted @ 11:11:00 on 04 March 2013Garnter say by 2014• 70 percent of global 2000 organisations will have at least one gamified application• 80 percent of them will fail to meet business objectives primarily due to poor design In the rush to jump on the band wagon and implement first without thinking through the goals and objectives it seems there is a risk of repeating some of the mistakes associated with Loyalty programmes in the 1990s.Gamification what is it and how to use it ?Read More





Terms & Conditions   Privacy Policy

CIRRUS Marketing Consulting Helping you achieve profitable sustainable growth™

CIRRUS Marketing Consulting Limited, Registered in England, Company No. 06791844

© 2009-19 CIRRUS Marketing Consulting Limited